SEC-907 -- CDBG ELIGIBLE ACTIVITIES.
(a) Economic Development Projects Through For-Profit Entities.-Section
105(a)(17) of the Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)(17)) is amended to read as follows:
"(17) provision of assistance to private, for-profit entities, when
the assistance is appropriate to carry out an economic development
project (that shall minimize, to the extent practicable, displacement
of existing businesses and jobs in neighborhoods) that-
"(A) creates or retains jobs for low- and moderate-income persons;
"(B) prevents or eliminates slums and blight;
"(C) meets urgent needs;
"(D) creates or retains businesses owned by community residents;
"(E) assists businesses that provide goods or services needed by, and
affordable to, low- and moderate-income residents; or
"(F) provides technical assistance to promote any of the activities
under subparagraphs (A) through (E);".
(b) Direct Homeownership Assistance.-
(1) In general.-Section 105(a) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)) is amended-
(A) in paragraph (18), by striking "and" at the end;
(B) in paragraph (19), by striking the period at the end and inserting
"; and"; and
(C) by adding at the end the following new paragraph:
"(20) provision of direct assistance to facilitate and expand
homeownership among persons of low and moderate income (except that such
assistance shall not be considered a public service for purposes of
paragraph (8)) by using such assistance to-
"(A) subsidize interest rates and mortgage principal amounts for low-
and moderate-income homebuyers;
"(B) finance the acquisition by low- and moderate-income homebuyers
of housing that is occupied by the homebuyers;
"(C) acquire guarantees for mortgage financing obtained by low- and
moderate-income homebuyers from private lenders (except that amounts
received under this title may not be used under this subparagraph to
directly guarantee such mortgage financing and grantees under this title
may not directly provide such guarantees);
"(D) provide up to 50 percent of any downpayment required from low-
or moderate-income homebuyer; or
"(E) pay reasonable closing costs (normally associated with the
purchase of a home) incurred by a low- or moderate-income homebuyers.".
(2) Termination.-Effective on October 1, 1992 (or October 1, 1993, if
the Secretary determines that such later date is necessary to continue
to provide homeownership assistance until homeownership assistance is
available under title II of the Cranston-Gonzalez National Affordable
Housing Act), section 105(a) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)) is amended-
(A) in paragraph (18), by inserting "and" at the end;
(B) in paragraph (19), by striking "; and" at the end and inserting
a period; and
(C) by striking paragraph (20).